I hear that people are suppose to hang in there. I do not know how true it is but they are saying if you pull your money now when the market does make a turn you won't have a chance to gain back what you lost. Any truth to that statement?
Maybe.
But if you don't lose any money from the start you'll be way ahead of the game. A 40% loss of principal will NEVER be made up.
And even if they do make it up in ten (10) years they are only back where they started.
A person age 60 who had $500,000 in their IRA or 401k plan now only has $300,000 left. If at age 70 they make it back up to $500,000 they effectively had 0% growth on their money for the past 10 years.
Another person age 60 who put their money in the most boring of places, a Traditional Fixed Annuity, would have at least $671,958 at age 70 based on a 3% minimum guarantee.
Now our stock broker competitors would claim 3% doesn't even keep up with inflation.
But isn't it interesting that my client with her $500,000 SAFE and sound will have at least $671,958 at her age 70.
Their client will be lucky to even get their $500,000 back and to do so requires them to continue to keep the $300,000 that's left AT RISK with the day traders playing stocks like a flee market swap meet.
So leave it in?
OR
Take it out?
Well does the person want to protect the $300,000 that's left with the hope they make it back by risking further decline or do they get out, stay out and learn they have just been played...... AGAIN!? _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
Fire, I really feel for you, fortunately my husband put a lot of time and effort into understanding all this and handles both of our accounts (very well I might add)...it frankly makes my head ache...
Most companys web sites have all kinds of learning tools and planning tools based on your answers to questions (ie amount to time left to retirement, ACCEPTABLE risk etc), look around the web site and see if you don't see some sort of planning/learning area....I HATE this stuff...but we really need to educate ourselves especially now...
You pay a monthly fee? man neither one of ours has that...if so I'd say you probably wouldn't be charge a thing....to call and talk with someone just ask them when they pick up the phone before you go into anything...of course they say to stay put, and maybe that's the best for you...my husband did the math after yesterdays disaster in the market, had we stayed put (he moved us in March of this year) after yesterday he and I would have lost 120k between the two of us! I'm so thankful for him! _________________ **************************************
Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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Wow what a great hubby. We just got our new statement in the mail and so far we are out $2000 not alot but half of that has been recently. They also put a letter in that they are raising the fees to monitor the account. We are calling on Monday but in the mean time I registered online so we can view and learn about the account. Hopefully I can make something out af all of it. I see that we are at the growth level..maybe going down to preservative would help. Gonna look into it and see if this head can absorb any or some of it. Thank You.
ABSOLUTELY you won't make as much but you shouldn't lose ANY...which right now is the thing to do (IMO)....most have a lot of information and education I'm sure you'll understand it a lot better after going over all the info and guides they have on their site. _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
**************************************
Started reading up on it and learning some things already. I see that having 90% of the money in high risk isn't good. I also didn't relize that since 2006 the account has made no money. Going to call tomorow morning before heading to the pain clinic and get things out of high risk. Thanks.
yep, i'd get right on that if i were you... _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
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Mark _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
Posted: Mon Nov 10, 2008 9:15 pm Post subject: What if it doesn't come back?
Lots of my clients can''t afford to wait till the market comes back. They need their money safe today! Why not put it in a FIA where if the market goes up you participate in the come back, but if things keep getting worse you''re not losing anymore principle. I know what I do...
